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Sunday, 08/12/2012 10:55:48 PM

Sunday, August 12, 2012 10:55:48 PM

Post# of 232507
KMAG is worth .10 Per Share Minimum!

Look at these numbers, here's what exponential growth looks like:


2011 Fiscal Year Total: $858,802
2012 Q1(Jan-March) $866,176 +.086% Increase
2012 Month of May Alone: $935,000 +7.95% Increase
2012 Month of June Alone: $1,105,480 +18.23% Increase
2012 Month of July Alone: $1,310,458 +18.54% Increase


For the last two months alone, the month to month sale increases have been over 18%! Now, let's crunch some mathematical equations to estimate upcoming month to month sales growth for the course of the next 12 months; we will do this by calculating growth at several different percentage increase rates. I will include numbers based on a conservative, average, and continued strong sales increases below. For the sake of this study, the conservative rate will be 1/3 of the current growth rate, the average will be 1/2, and the aggressive will be a nice round number at 15% (Which is still lower than the current month to month growth rate). Here is the breakdown:

Current Month to Month Sales Growth Rate: 18%
Conservative Estimates at 1/3 of Current Rate: 6%
Average Estimate at 1/2 of Current Rate: 9%
Aggressive Estimate at Lower than Current Rate: 15%


6% Growth

July: $1,310,458
August: $1,389,085
September: $1,472,430
October: $1,560,775
November: $1,654,421
December: $1,753,686
January: $1,858,907
February: $1,970,441
March: $2,088,667
April: $2,213,987
May: $2,346,826
June: $2,487,635
July: $2,636,893

Total: $24,744,211
Profit: $4,948,842 (20% of Sales)
Net Income: $2,474,421 (10% of Sales)
EPS: .004 (Net Income/OS-2,474,421/609,420,100)
Median Sector P/E: 22.74
Estimated PPS: .0923

Current PPS: .0134
Expected PPS growth: 588.81%

9% Growth

July: $1,310,458
August: $1,428,399
September: $1,556,954
October: $1,697,079
November: $1,849,816
December: $2,016,299
January: $2,197,765
February: $2,395,563
March: $2,611,163
April: $2,846,167
May: $3,102,322
June: $3,381,530
July: $3,685,867

Total: $30,079,382
Profit: $6,015,876 (20% of Sales)
Net Income: $3,007,938 (10% of Sales)
EPS: .0049 (Net Income/OS-3,007,938/609,420,100)
Median Sector P/E: 22.74
Estimated PPS: .1122

Current PPS: .0134
Expected PPS growth: 737.31%

15% Growth

July: $1,310,458
August: $1,507,026
September: $1,733,079
October: $1,993,040
November: $2,291,996
December: $2,635,795
January: $3,031,164
February: $3,485,838
March: $4,008,713
April: $4,610,019
May: $5,301,521
June: $6,096,749
July: $7,011,261

Total: $45,016,659
Profit: $9,003,331 (20% of Sales)
Net Income: $4,501,665 (10% of Sales)
EPS: .0074 (Net Income/OS-4,501,665/609,420,100)
Median Sector P/E: 22.74
Estimated PPS: .1680

Current PPS: .0134
Expected PPS growth: 1,153.73%

As we can see above, KMAG is currently on course to be valued between .09 and .17 cents based on conservative and aggressive estimates. The median PPS estimate of all three outlooks is currently at .1242. Keep in mind these figures are based solely on fundamentals. CEO share buyback, NOBO list, announcement of major customer(s), stock exchange uplisting, and growing investor sentiment has not been calculated into this future outlook.

Based on all of the figures above, combined with the upcoming company announcements and events, I estimate a realistic PPS at a minimum range of .15-.25 per share within 3-6 months. The market is usually behind when it comes to aggressively growing companies; as more Investors are made aware of the true value of this company, momentum will build and help the market reflects its true value.



References:

KMAG Announces July 2012 Revenue
http://ih.advfn.com/p.php?pid=nmona&article=53790113

KMAG Announces June 2012 Revenue
http://ih.advfn.com/p.php?pid=nmona&article=53545210

KMAG Provides Company Update and Shows Significant Financial Progress
http://ih.advfn.com/p.php?pid=nmona&article=52946636

KMAG 2012 Q1 Report
http://www.otcmarkets.com/financialReportViewer?symbol=KMAG&id=84177

KMAG Company Overview
http://www.otcmarkets.com/stock/KMAG/company-info